channel. 'l'lsee youu next w weekk. >> john: politicians are good at making promises. >> libel protection. >> our that nation has made a promise to america's seniors. >> but don't they see the unintended consequences of their laws? like cash for clunkers. does it make sense? sure it will stimulate the auto business, stimulated... stimulate! politicians often say, we need to hire at minimum wage. >> its if you are aness issue.

>> it would kill her job. >> john: title nine was to create equality. >> it lessens the opportunity. >> john: we don't need it. the politicians law let protestors talked banks into giving risky loans and new stadiums will create jobs but do they? >> handing money from your right hand to your left. do you know government wants you in the alpaca business and a house you can't afford. >> what is the dumbest? ethanol? >> there has been a case law of unintended consequences. >> john: maybe the biggest is healthcare.

>> my top ten list of politicians good intentions gone wrong. >> john: politicians always say they'll fix things but their laws have unintended consequences. let's counted them down. promise number 10. government can and should help the carmakers. how? i know. let's destroy some cars. does this make sense? sure it will stimulate the auto business. >> that was idea for cash for clungers. >> cash for clunkers. >> democrats and some republicans voted for it. >> we are thrilled to be part of jumpstart go the economy. >> john: for two months they paid people $3,000 if they had older car crushed and buy a new one. they say it stimulated the

economy. >> it was good for suppliers. it is good for workers. >> john: i should destroy more stuff! >> cash for clunkers may be the dumbest policy ever. >> david bose and jeremy anwill point out the increase in cars sold simply stole sales from months before and after. >> what is missing most of the cars that were sold under the program would have been sold anyway. >> john: progressives pointed out that cash for clunkers did increase car sales. they steal sfrit future years? >> it does. that is what stimulus is all about. >> john: there was the usual government skewup. >> federal government can't process a simple rebate. >> then they ran out of money.

>> they may need to suspend the program. >> john: instead congress appropriated more money and more cars were destroyed, more success. how far can i carry this principle? i know what to do. let's destroy this. economy is struggling. we need to stimulate the economy. this will do it. by destroying some things and they'll have to make new ones. that will create jobs. stimulate, stimulate! >> why is it good to destroy usable stuff? >> cars that were taken off the road were still d but at the same time they are not leading america forward. >> you look at a couple cars like this you would never think these are going to be cash for clunker cars.

>> some of them are better than i drive sometimes. >> john: yet the politicians still say it was good idea. >> breathing rights back into the automobile sector. >> so if destroying cars is good how much wealth could i create if i did an earthquake. a disaster like this could help an economy some people think it can. >> i think this can be an opportunity for a boom economy in haiti. >> she can see the jobs created for cleanup workers and building new buildings. likewise, after september 11th, pawing krugman says the attack could do economic good. rebuilding will increase business spending. people think that because they can see the rebuildings just as they can see cash for clunkers.

you can see the people going in to buy cars because the government is subsidizing the purchase of cars. what you can't see what people would have bought if the government wasn't suction dies go the pir of cars. maybe they would added the room into their house, maybe they would have put it into a savings account to save for college. >> john: there were other unintended consequences. >> the cash for clunkers program could hurt you if you buy a used car. >> john: used cars went up $1800 because others were crushed. those were hoping for a bargain, too bad. one more unintended consequence, charities that rely on used car donations were hurt. >> we have had two cars donated the last two weeks.

>> john: so we raised the price of used cars. >> we reduce the cars given to charity. we barely affected the environment and we spent several billion dollars. >> why doesn't the government butt out? >> you can't create a program that is going to make everybody happy. the larger goal for cash for clunkers were hoonlable. >> he can leave with that but can taxpayers? on to promise number nine, congress must guarantee americans a living wage, only fair. protestors and politicians agree wages should be higher. >> its fairness issue. >> john: for years it was $5.15 an hour. congress raised it to 7.25, progressives say it should be

higher. >> absolutely. >> what would that be about? >> it would be $9 an hour. >> john: russ roberts point outset go minimums has unintended consequences. >> i get a raise. i'm fantastic. i'll be able to take care of my kids. that is part of the political thing of minimum wage. that is the benefit if you keep your job. >> what if they force made company to increase wages? >> aren't you under paid. >> absolutely. let's give them a 50% raise. that is awesome. second part, i wonder if they are going to keep as many people as they had before. >> we quit hiring people without experience. >> john: chris runs a combination meat counter and bar in bakersfield, california. >> minimum wage jobs are entry level job to give experience.

>> when minimum wage rose to $89 he stopped hiring new people. low wage jobs used to be a way for kids to get into the labor force, to prove themselves. most every gas station used to offer free window cleaning. not anymore. construction industry teens could get a foot in the door, learn the discipline of regular work, but the minimum wage left many teens out of jobs. no wonder teen unemployment is now 25%. >> if they were to get rid of minimum wage we could easily hire more people. >> warren manages a company. they are trying out machines. >> i prefer having a person because that person can be friendly and provide a smile and provide information about the park and answer questions and where are the bathrooms. >> john: but with a higher minimum wage he switched to automated.

fewer people and more unemployment. in fact unemployment has risen more in states that raise their minimum wage. >> what would happen if we threw out the minimum wage? >> what that leaves the employer in the cat bird seat to drive the wage as low as possible. >> john: these businesses would like to pay their employees as little as possible. they must pay more than minimum wage because good workers have choices. at this bowling alley, they make more than the minimum. >> minimum wage as dishwasher which was 3.75, $4. >> john: now he makes more than $10 an hour. 5 percent of less american work force earns minimum wage. the other earn more, why are they being paid so much, because their employers feel guilty?

>> john: no they have to pay extra to keep good workers. she started working here when she was 13. >> at 13 i was making a good amount of money. minimum wage is fine. >> john: now she makes as much as $20 an hour. >> if you work hard you can make more. you have to prove yourself. >> john: but minimum wage been what some politicians wanted -- kelsey may never have that chance. >> i can make money paying $6 an hour but i can't make it 7.25, i won't expand. >> if the cost of expanding workers is too much for you to absorb, then you probably don't have the best business model going. >> john: then you deserve to fail? how does that help. >> what could be more cruel than to raise your rate artificially

and then have no wage. >> john: thanks to government good

>>. >> john: i'm against sexism. aren't you? men and women should be treated equally. that seems fair. it's a new idea. >> our culture used to say we are the breadwinners, women do

house work. then came the women's movement. president nixon signed title nine says no person are on the basis of sex can be discriminated. >> empower, empower, empower women. >> john: vice president biden says it changed civilization. >> we made a significant advance. >> title nine did that? no. by the time it passed in 1972, life had already changed. three years before when i graduated college, my college didn't even admit women. by the time title nine passed it was already coed. there are more women in college than men. parents demand relief for girls because institutions respond to consumer demand but that is not good enough say the lawyers.

>> women's sports foundation.... >> john:. >> john: they are led by athletes like nancy mckar. she won olympic gold mad else and a college scholarship because of title nine. >> this university would not have given that scholarship had it not been for that statute. >> john: maybe back then you needed to force it, but now, colleges want to appeal to women. >> everyday, i'm on the phone with people who are having a hard time with their athletic program. >> john: under title nine it's seos to be proportion at. if 50% are women, 50% of athletes better be women or schools can get sued. so they protect themselves by cutting boy's team. >> they don't have a swim team. it's one of ten teams they are

cutting. >> cal berkeley has won 26 national rugby championships. but the school told them they are no longer a varsity school. >> university gathered athletes to announce it. >> we were all in shock. >> john: the coach knew it was about title nine. >> we have 60 males. we've ended up demoted out of athletics because of male head count. >> if you are trying to even out the men and women, the team with 60 players evens the national championship. >> we have four players on the national team. 12 all americans last year. >> john: the school told them the team has cut to save money. but get this -- this team was self-sufficient. they raised enough money to pay for themselves. they even offered to help pay for women's teams. >> to help fund women's lacrosse and women's gymnastics.

>> john: the school said it won't work but the rugby team to help pay for the two women's teams. sandy barber since the women's teams were restored they would scrap plans to make another round of cuts for men's teams to satisfy title nine. they gave the gymnastics team a reprieve after they raised money. but since then, men's programs at other schools like track and field and cross-country at university of delaware have been axed in the name of title nine. >> they are competing for students. if there is demand they will give it to them. when the culture changed, million girl soccer teams appeared. it will happen if there is demand. we don't need you lawyers. >> any way you measure it women are behind. >> john: men and women are different. >> no, really they may have different interests in different

sports. >> john: girls are more likely to work on the year book. boys want to smash into things, we are just different. >> maybe boys want to smash into each other but girls wanted to flip around the floors and girls wanted to swim. >> john: they had more than a hundred division one teams. today there are just 17. >> it will have a huge impact on the u.s.a. program. >> he says title nine will kill the u.s. olympic program. >> gymnastics can have 6.3 scholarships. how can any person look at that and say it's fair. >> john: it isn't fair. it's one of many unintended consequences for title nine. >> what it ends up doing is

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>>. >> john: now, promise number seven, if politicians take your money and use it to build fancy stadiums to host big events that would boost the economy. that the way america fought to get the olympics. >> olympic games brought hundreds of thousands of tourists to china. that is the reason cities a bak bend over backwards. >> we want these games. >> john: he wanted it in his hometown so much he and his wife campaigned for it. >> i never dreamed that the olympic flame may light up lives in my neighborhood. >> john: but they lost lof9. brazil won. >> they say america missed out.

>> olympic games have to transform an entire nation and a city. >> the job contracts and opportunity. >> thousands and thousands of construction jobs. >> john: but an economist says most of that construction ends up as waste. >> they built a stadium in china. there is no need for it anymore. it sits virtually empty. >> john: people remember the big crowds but they are less likely to remember the waste. >> they tell me this is good. >> we're going to have people spending their money. we're going that i can that money and spread the wealth around. >> do they ever live up to their promises? >> never. >> but they repeatedly claim building lavish new stadiums like this one in miami will provide economic stimulus. >> build it and they will come. it sounds good and they are predicting this is hundreds of millions of dollars in benefit.

when economists go back and look the benefits aren't there. >> john: one reason is that stadiums are not in use most of the year. baseball teams have only 81 home games. basketball teams just 41. football just eight. burr they do other things. >> there are few concerts. let's say you haven't hundred events, third of the year you are having it open. >> stadiums provide jobs for ushers and stadium vendors. >> unseen cost, they would be spending money elsewhere at the local bar. there is one less bartender. one less waitress. a movie theater has one less. >> john: you can't see the person who doesn't get hired? >> absolutely. it's classic seen versus unseen.

>> john: unseen like the grocery store doesn't have a politician in his pocket. >> they aren't asking big subsidies from government. we are taking from people and asking them to pay more to subsidize a wealthy football team owner. >> what do they do when they say we're going to leave? >> do what san francisco did, the city said we're not going to do it. okay, i'll build a stadium for you. they don't need government welfare to build for them. >> john: another event was the g-20. leaders and bureaucrats from 20 nations come together to talk about the economy. several years ago when they chose to meet in pittsburgh, the mayor was excited. >> they see our beautiful skyline. >> a senator bob casey said it would be a boon. they said it would bring in thousands of visitors.

they old a hotdog shop that stayed open late for thousands of new customers but they never came. >> it was completely dead. >> i thought it was going to be a good thing at first. >> john: where were all those guests the city promised. here are some. a thousand state troopers. >> i hereby declare this is to to be unlawful assembly. >> next year's g-20 will be in st. petersburg russia. >> john: next, uncle sam wants you to help you buy some of these. when we c

live from america's news headquarters, i'm craig bosswell. a long tense night for passengers on a united airlines jet forced to return to newark international airport. the boeing 757 left engine caught fire shortly after takeoff saturday evening. the flight bound for berlin forced to circle over new jersey to burn off fuel. the fire was extinguished and the plane landed safely no. one was injured and united is working to find passengers other flights. dpeens secretary is urging hamid cars yi to crack down on so called insider attacks in

which afghan security forces have turned their guns on us us and nato troops. skm ep swore to ensure all afghan troops are vigorously veted. i'm craig bosswell. channel. >> john: want to get rich. uncle sam will give you a break on one of these. politicians' promise gone wrong number six. >> we have to support and strengthen family based agriculture. >> john: supporting family based agriculture. america is sure dng that. in new jersey, they raise alpacas. >> the reason i got in i was looking for a tax shelter. >> john: so was this woman.

there are so many tax benefits for livestock beegd and alpacas are easy to raise. have uncle sam help you buy your alpacas. >> have uncle sam but ends up paying for them, uncle sam. >> john: lots of people are getting in on it. >> i could never write it off. after purchasing the alcapas, it became a sacks writeoff. >> john: they asked members on a scale of one to ten, what motivated to you buy. more than half rated tax benefits. >> we got it to it for tax reasons. >> john: they sound like accountants. >> take a deduction. >> depreciated over five to seven years. >> john: they are also valued

for fleece. but it doesn't explain in the growth. 25 years ago there was 150 in america. now there are ten times that. >> they have a pedigree that is solid. >> at an auction, prices have gotten high. >> just recently an animal sold for over $600,000. >> this is not necessarily a good thing. >> do you have someplace else to go. >> he may not like me talking about this, but economists warns the industry is a bubble. government is good at creating bubbles. as reported, congress is ridiculous tax credit created a thing in golf cart sales. >> to encourage energy efficient products. >> john: they are connected to

coal plants. electric cars may be worse for the environment. no matter. >> the jobs are going to be created. >> john: this car dealer advertised free electric cars. buy one for $6,000 and take the $6,000 tax credited. governor mike huckabee got one. a friend of his got seven. i got this one totally free. >> good for me but you taxpayers paid for it. >> the deal sure held the golf cart industry. my dealer sold 10,000 carts. at least the golf cart credit expired but most giveaways don't. >> i fell in love with it. >> john: first you fell in love with the tax break? >> i might have had two, not a hundred. >> next, have you got some of these in your wallet? i hear the evil credit card answer wanted to rip us off. don't worry, government says it will stop credit card abuse.

that is promise gone wrong number five. >> it's time for strong reliable protection zbloojts protects. >> john: congress passed a new bureaucracy to stop credit card from penalizing you. >> unless your business depends on cutting corners, you have nothing to fear from reform. >> john: yes, you do. once credit card companies could penalized late pairs. >> rates went from 13% to 15%. credit card interest went up. banks stopped offering credit to some people. j.p. morgan chase cut off 15% of its customers. >> hundreds have thousands of

people that can't get cards and all of rest of us have to pay more for credit. >> john: maybe they are better off not having credit because they couldn't handle it. >> just to say they don't have a credit card doesn't mean they don't have credit. >> john: they will go to more expensive plays. >> local pawnshop to get money. >> john: and really get ripped off. payday lenders make small, short term loans. >> a bill came in, it was little higher than i anticipated. but the annual interest posted clearly 521%. some places charge more. >> 800% interested is legal? >> maybe not once consumer protectors ban the abuses for payday loans. but what elites call abuse, some consumers call a way out. >> i know people say, predatory lending, but if you have an

emergency. >> john: for many people, it's the only way they can avoid missing a bill payment. >> it's not just a matter of saving money, it's a matter of saving yourself grief. >> john: why don't they get a credit card. >> people who have limited choices when it comes to credit are not likely to have their situation i am moveded by teeing away some of those limited option they have. >> john: they promised to fix credit card penalties but the penalties is 7% of bank's earnings. they make much more charging interest. politicians say they rip us off, too. >> if they could charge hundred percent? >> the problem is, they can't. i have four credit cards in my wallet. my credit cards are competing for my business. if one tries to rip me off or charge me too much or they don't

talk to me nice on phone i'll switch. >> and caps have unintended effects. arkansas capped interest at 10%. >> very few people can get a credit card in arkansas and arkansas is known as the pawnshop capital of america. >> in the 1960s second biggest revenue of organized crime was illegal lend can. is that what we want to go back to? where we get rid of payday lending. they charge an interest rate that was well over thousand percent and collection techniques are a lot tougher techniques are a lot tougher than your local pawn shops♪ you want to save money on car insurance? no problem. you want to save money on rv insurance? no problem. you want to save money on motorcycle insurance? no problem. you want to find a place to park all these things?

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>>. >> john: promise wrong number four. government will give everyone health insurance but for less money. [ applause ]

>> john: this was the signing ceremony. and then... they gave the speaker a birthday celebration. look at the big smiles. they were thrilled that their affordable care act would give insurance to many more people for less money. >> healthcare for all. [ applause ] >> speaker pelosi wouldn't talk to us about healthcare. they told us to talk to ron pollack of family u.s.a. a group that fought for obamacare. >> doesn't this make unintended consequences or bad stuff? >> i don't think it creates bad stuff. people can get present vint vented i have care. >> john: i keep hearing about problems. >> what we've got is rising premiums. people dropped from their health plans.

health insurance companies fleeing from the market. >> president told us.... >> if you like your health care plan, you will be able to keep it. >> principle financial has completely left the health insurance market. one million customers will have to find insurance elsewhere. >> three insurance companies are dropping policies. >> well point, humanna, signa has gotten out of the child only business. >> it's less than 1% of those. >> financial group got out of the whole business. >> the fact some marginal company dropped out. let them go out of a business. >> john: not a problem? >> not a problem. >> john: and they are what they consider problems, they make exceptions. >> 100 plus employers has a waiver from the administration to allow the workers to opt out

of the new plow. >> now they have given more than thousand free passes to favored groups. biggest single waiver was for the united federation of teachers. >> if this was such a good law why do they give waivers to those that kiss them. >> the administration is taking a look at individual circumstances where major change needs to be made by 2014. >> john: sounds like a scam. >> i think that is misinterpretation of what is happening. >> john: and then, there is the cost problem. >> my proposal would bring down the cost of healthcare. >> john: not so far. prices are up. >> facing rate increases of 1-9%. >> it's just policy making. this idea we can give people all sorts of benefits and there aren't going to be costs. maybe the problems were not unintended. maybe obamacare meant to kill

private insurance companies. if that was the intent there was one unintended consequences. >> they have gained control of the house of representatives for the republicans. >> john: next, politician's promise number three, they are going to solve our energy problem. this solution takes your money and give it to americans who make ethanol. >> renewable, home-grown fuels. >> john: subsidies bring both parties together. americans can grow it and create. >> a nation that is stronger and cleaner and more secure. [ applause ] >> john: no, it's not. >> corn based eth knoll has been a case study in the law of unintended consequences. >> john: my gosh, something i

can agree with senator mccain about. he couldn't say unintended consequences of mccain feingold. >> we shouldn't be subsidizing ethanol. >> we are trying to change the pattern. >> governor wesley clark fights for ethanol. >> in 2008 we paid $50 billion to the saudi government for imported oil. >> john: we're still doing it but we're paying you guys a ton. >> the point is the money paid on ethanol stays in the american economy. >> john: it does but at what cost. congress realized that ethanol tax credits were a bad idea but they kept in place rules mandated oil companies use ethanol in gasoline. at least our money stays in the country. >> it makes me feel good. i'm keeping the money in america. >> all these programs are designed to make people feel good. we're going to help the farmers and going to hurt the oil

producers with ethanol. we don't look at rising price of milk and excessive fertilizer that were used to produce corn. >> john: food prices are higher because so much goes to ethanol and we consume a lot of corn. corn syrup helps create the meat we eat. steve who raises cat sl mad the feed costs more because ethanol has been both mandated and subsidized. >> if you want to do the same thing for the ethanol guy, you have to mandate that absolutely every man and woman and child in america has to eat 50 pounds of beef and you are going to give me more money on the steers. >> john: ethanol wants more subs does while talking about free markets. >> you should have free market competition. >> it means no subsidies, you

have been getting subsidies for years. >> we're ready to transition. >> john: tomorrow? >> can you give us a chance so that americans can have a choice as to what they put in their pump. >> john: by choice, government needs to pay to install the pumps. but government didn't install gasoline pumps, entrepreneurs did. >> service stations will do it. why the taxpayer? >> it's like anything else you have to get it started. >> you are parry ra site feeding on the taxpayer. stand on your own feet? >> we are ready to stand on our own feet but it needs a fair playing field. >> john: they want more subsidies when ethanol has received $50 billion and increases costs to food and isn't even better for the environment. >> corn ethanol is responsible

for incredible environmental harm. he works for friends of the youth. green lobby once supported ethanol but now they say.... >> environmental consequences are worse than the environmental consequences of gasoline. >> john: it makes no sense because it was because of the environmental groups, don't use oil. >> now we studied corn ethanol we realized it actually has worse consequences than gasoline. >> john: so, whoops, we were wrong and we can't undo it? >> we are fighting for it. >> but congress forces us to use it for years. >> cash for clunkers is dumbest than ever so ethanol may be pound for pound the dumbest program ever. whoa, look at all those toys. insuring that stuff must be a pain. nah, he's probably got... [ dennis' voice ] allstate. they can bundle all your policies together. lot of paperwork. [ doug's voice ] actually...

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>>. >> john: number two, government can increase home ownership. >> we want more people owning their own home. >> some politicians promised. >> our home ownership strategy will not cost the taxpayers one extra cent. >> they point out, not only did our policy cost taxpayers billions. >> it killed neighborhoods. it gave people an illusion they could afford something they couldn't afford. >> john: i'm told greedy bankers? >> government exaggerates rather than minimizes the age old impulse. it made it hard for bankers with the right thing. >> john: if a banker stayed with safe loans he missed out on

properties. >> if he was mega good lopes he may be earning 8% rather than 20%. maybe he loses his his job. >> most damage was done through bad loans at fannie mae and freddie mac but some as done by law that requires banks to lend to disadvantaged people. >> make the goal of affordable housing a goal that attainable to all americans. >> so congress said make loans in poor neighborhoods or we may not let you merge in w other banks. they use the law to demand banks make more loans. >> we said to banks, you have to make special products that are affordable to low income people, particularly women and minorities. >> any bank merging knows they have to talk to us. >> a bank wants to merge has to talk to you? >> they don't want us in front of there. if we stand up and say this bank

is a turkey. >> john: sounds like you shall running an extortion racket? >> we say lend money. >> john: isn't that kind of like extortion? >> it's the lay. >> john: even worse, government pushed mortsd that required down payments of just 3% or less. this chart shows how those loans gradually increased. >> having everyone own a home is the dream of national association realtors. >> we want to take you advantage of $8,000 first time home tax credit. >> given all the foreclosure did they stop subsidizing housing? >> how about $8,000. >> we haven't learned the lesson we ought to stop fiddling with the housing market. >> john: we haven't learned that lesson. nor have we learned not to if i had with the automotive market

and college supports and stadiums and credit cards and all the things that government promises to make better while really making them worse. that is the number one promise gone wrong. these guys say they will be fiscally responsible. and we re-elected them and they send more. they are spending us into bankruptcy. there must be 10,000 harmful pranlsd they create more. why can't we cut them? >> every one of those 0,000 programs has a lobbyist in washington. >> each lobbyist will spend big to preserve his program. >> they got tv commercials with the soft music and rugged farmers producing these products. >> john: and those lobbyists. they always know when the bill is up before congress and they send political contributions and they send washington to lobby. look at the tea party. they don't have signs out there stop the cash for clunkers program. stop the ethanol program.

stop the title nine subsidy program. you could do a whole show, people should be more engaged but we have lives and there is no way that any normal person can know about the ten thousand programs that make up the $3.5 trillion budget. >> john: so programs keep growing and we must pay for their costs and unintended consequences forever. unless there is a new wind blowing in america. a new attitude. a new expectation, maybe washington should do less. i sure hope so. that that is our program for tonight. i'm john stossel hoping for restoration of freedom. good night.

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